Blockchain technology made a splash around 2018 with the rise of BitCoin. Now that the hype has died down a little, many people are wondering — is blockchain useful, or was it simply a fad?
As a refresher, blockchain is a very secure, instantaneous way of sending information or money. The technology was touted for its advances in cybersecurity, and was predicted to change the face of the world by allowing instantaneous money transfers around the globe without brokers.
Blockchain-enabled “smart contracts” also allowed unprecedented transparency between business and customer. Some analysts predicted that small and medium-sized businesses would be able to compete with enterprise-level businesses by cutting out the “required personnel, middlemen, expensive software licenses, subscriptions, and precious time” transactions needed.
Blockchain does have some other uses. Some small and medium-sized businesses use the technology to securely record information. Commonly, sensitive information like names, birthdays, social security numbers, addresses, and the like, are stored with blockchain.
But is blockchain useful to your business?
Is Blockchain useful?
Blockchain technology may be useful to your business if you fit the following criteria.
Tech-savvy. Blockchain tech, despite its explosive growth, still requires a high degree of tech-savvy to adopt. It also works best if your business partners or customers are also willing to adopt blockchain. While this might be understandable criteria in Silicon Valley, for many small warehouses and manufacturers, it’s less likely to happen.
International business. The key application for small and medium-sized businesses, discussed again and again, is the ability to securely and quickly send funds around the globe, without paying exorbitant fees or waiting for brokers. If your business relies on exchanging money with global partners, it’s entirely possible that both parties could save money by cutting out the middlemen — if both parties are willing to adopt blockchain.
Remote workers. Do you rely on remote workers? If so, you may benefit from blockchain. Paying them is easier than ever with the help of blockchain — and your workers will likely appreciate how quickly they can be paid. But again, blockchain relies on a level of tech sophistication that many people don’t have.
The Verdict
Is blockchain the universal panacea many tech-prophets claimed it would be? Probably not. And for many small and medium-sized businesses, reaping the full benefits is reliant on many factors. Still, the technology does have many applications and is still in its infancy. In another five years, another blockchain craze may sweep the world of business — and make the technology more accessible to small businesses.
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